With all of the economic problems in the world it is pretty surprising to us that there are virtually no talks on the higher level regarding solving of the problem or at least taking it under a strict supervision. Right now it is virtually impossible to long assets because you never know what the situation is going to be like in the morning after the day goes by in the US and new decision and statements are made. Like we said. Something needs to be done until the situation is till solvable.

And with that in mind it seems like Chinese are ready to somehow untangle the situation by meeting with the US officials in Washington in the end of the summer. Will that save dollar trading from instability and will it improve the overall situation in the world? We certainly hope so. Well. If you remember, there was already an attempt to stabilize the situation and agreements were reached before Trump backed out of the agreement and imposed tariffs on China anyway. Oh, we remember those couple of days in the beginning of summer.

We can use that example to see whether the situation will improve this time. Back then dollar stabilized in a matter of hours. Trading at Chinese segment of the market became possible again and the whole world was frozen in order to see what was going to happen next. But alas! Trump made up his mind and went the opposite direction which led us to the situation we are in now. So, can we count on the agreement being reached this time? We think we can. There is simply too much at stake here to toy with it.

Although there is too much information that points to the fact the Trump doesn’t really understand the work of the markets. He just does what he wants with no regards for the consequence. Which is pretty surprising fir the mogul of his scale. Luckily there is a whole office of stuff in order to handle the talks. So it is quite possible to see trading be stable again very soon. The meeting being scheduled right now but we know that the approximate date Is somewhere close to us. Chinese ought to try and settle everything from the first try as failure will indicate even more losses in their own economy and as a result in the economies of all of the emerging-economy-countries

With geographical position of Australia, it may often seem that it is torn from the rest of the world. Some people even go as far as to think that Australians live upside-down. But that is of course not true. In fact, the connection that Australia and its economy has to the present situation is far more tight than we tend to think. We don’t really pay attention to the situation in the county when it appears that we should do just that.

What currency do you think AUD (Australian dollar) has the most ties to? You could never guess. It is Chinese yuan. Yes-yes. That very Chinese yuan that has been falling ever since the tariffs were announced. And we were so focused on the USA-Chinese tensions that we forgot to look around us and talk about collateral damage that sadly brought a lot of damage to AUD.

Australian national currency has fallen to the lowest point in recorded history of the currency. In the past six months it lost as much as 8 percent of the value. Can you imagine the hits taken by the economy of the country? We can. And traders involved with the AUD currency couples must wonder as to when it is going to start to grow again? We wonder that as well. But you see, Australia, being the country with emerging economy is not only tied to Chinese yuan. There is also the connection to every other emerging-economy currency in the world. And yes. That means that lira has a of influence on the poor AUD.

Even if the agreement is reached by the Chinese and American in the end of August there is no guarantee that Turkish situation is not going to keep on rocking the boat. Of course, we can always hope for all of the problems to sort themselves out but there is no real way of telling whether it is going to happen until it does.

Now Australian dollar remains the currency that receives collateral damage from all of the conflicts with Australia politicians not even being in the picture. Which isn’t really fair. But this might be the time to stop trading AUD at least until the talks. Because as we can see from the current situation the problems just keep on coming to this segment of the market.